Focus YouTube

Star Entertainment closure to cost US$140m

Star Entertainment closure to cost US$140m

Operator has executed additional debt funding from banks for A$200million (US$126million) to help survive the crisis.

Australia.- The Star Entertainment Group has said that a three-month shutdown due to Coronavirus could cost the firm as A$220million (US$140 million) while a six month closure would cost. $320million ($201million).

The company has suspended all activities at its venues since March 23 in line with the shutdown mandated by the government in order to contain the spread of Covid-19.

To ensure it can survive the crisis, Star has executed additional debt funding from banks for A$200million (US$126million).

“The Star is implementing necessary and wide-ranging measures to strengthen the balance sheet and preserve liquidity in the current exceptional circumstances,” Managing Director and Chief Executive Officer, Matt Bekier, said.

“The shutdown continues to have a significant impact on our people and their families, and the group welcomes the Australian government’s support, particularly the JobKeeper Payment program.

“Our focus remains on preserving the group’s solid financial position and operating flexibility to resume operations quickly when the current Covid-19 restrictions begin to lift,” he added.

Star also noted that it had “completed staffing requirements” during shutdown, involving about 8,500 staff being stood down.

Chairman John O’Neill, said: “These unprecedented challenges have had a considerable human impact. To temporarily stand down more than 90 percent of our dedicated workforce will be the most painful decision our senior management is ever likely to encounter.”

In this article:
australia business finance star entertainment